Home Buyer Tax Credit: How It Works
First-time homebuyers in 2008 can take an income-tax credit on their purchase, thanks to passage in Congress earlier this year of the first-time home buyer tax credit.
The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.
The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.
If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.
The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit
Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven.
[Editor's Note: The credit is set to expire in mid-2009, although industry groups, including the NATIONAL ASSOCIATION OF REALTORS®, are encouraging Congress to extend it. NAR is also encouraging Congress to make the credit available to all buyers and to eliminate the repayment requirement. More detail on how the credit works is available from NAR on REALTOR.org.]
Source: Chicago Tribune, Mary Umberger (12/28/2008)
Monday, December 29, 2008
Friday, December 12, 2008
How low will interest rates go!?!
30-Year Rates at Lowest in 4 Years
Freddie Mac reports a decline in the 30-year fixed mortgage rate to 5.47 percent during the week ended Dec. 11 from 5.53 percent last week and 6.11 percent a year ago.
Some lenders are locking in even lower rates as they build on momentum started when the Federal Reserve announced plans last month to purchase a substantial number of mortgage-backed securities. HSH Associates and Inside Mortgage Finance are reporting interest on 30-year fixed loans at 5.33 percent and 5.09 percent, respectively.
Freddie Mac chief economist Frank Nothaft says mortgage rates also were driven downward by the recession and rising unemployment.
Source: The Washington Post, Dina ElBoghdady (12/12/08)
© Copyright 2008 Information Inc.
Freddie Mac reports a decline in the 30-year fixed mortgage rate to 5.47 percent during the week ended Dec. 11 from 5.53 percent last week and 6.11 percent a year ago.
Some lenders are locking in even lower rates as they build on momentum started when the Federal Reserve announced plans last month to purchase a substantial number of mortgage-backed securities. HSH Associates and Inside Mortgage Finance are reporting interest on 30-year fixed loans at 5.33 percent and 5.09 percent, respectively.
Freddie Mac chief economist Frank Nothaft says mortgage rates also were driven downward by the recession and rising unemployment.
Source: The Washington Post, Dina ElBoghdady (12/12/08)
© Copyright 2008 Information Inc.
Tuesday, December 9, 2008
Open House This Weekend!
Here's your chance to see a pristine home on rarely available street. This executive home features great views of golf course and lush landscaping. As you enter the stone courtyard you see this home is special. Formal entry, gound floor office with sliders to courtyard, formal dining room, large eat in kitchen with granite, custom window treatments, 4 bedrooms plus loft upstairs, laundry room, security system and so much more. Come see this wonderful home, you will not be disappointed you'll be home!
Open House Saturday Dec. 13th, 11:00am - 4:00 pm
1691 Emerald Point Ct, El Cajon, 92019
For more information or directions, call Kimberlee (619) 987-5143.
Open House Saturday Dec. 13th, 11:00am - 4:00 pm
1691 Emerald Point Ct, El Cajon, 92019
For more information or directions, call Kimberlee (619) 987-5143.
Friday, December 5, 2008
Investor 4 Loan Limit
Investors Not Happy With 4-Loan Limit
Some real estate investors are up in arms over a new Fannie Mae-Freddie Mac policy that limits to four the number of real estate loans that can be held by a single person.
The rule, which took effect Dec. 1, prohibits an investor from obtaining even a fifth mortgage no matter how much money he puts down or how much income documentation he provides. It offers no exceptions for assets or history of success as a real estate investor.
“The four-house rule is going to keep us in a recession longer,” said Tom Hutchens, an Atlanta-area investor. “It’s going to keep qualified buyers out of the market.”
Some investors are trying to work around the rule by partnering with other investors to either buy in cash or use their eligibility to borrow.
Source: The Atlanta Journal-Constitution, D.L. Bennett (12/05/08)
Some real estate investors are up in arms over a new Fannie Mae-Freddie Mac policy that limits to four the number of real estate loans that can be held by a single person.
The rule, which took effect Dec. 1, prohibits an investor from obtaining even a fifth mortgage no matter how much money he puts down or how much income documentation he provides. It offers no exceptions for assets or history of success as a real estate investor.
“The four-house rule is going to keep us in a recession longer,” said Tom Hutchens, an Atlanta-area investor. “It’s going to keep qualified buyers out of the market.”
Some investors are trying to work around the rule by partnering with other investors to either buy in cash or use their eligibility to borrow.
Source: The Atlanta Journal-Constitution, D.L. Bennett (12/05/08)
Wednesday, November 26, 2008
Happy Thanksgiving
I wanted to take a moment and wish everyone a Happy Thanksgiving. I hope you all have a chance to relax and spend some quality time with your family and friends.
Take Care,
Kimberlee
Take Care,
Kimberlee
Wednesday, November 19, 2008
Wednesday, November 12, 2008
Citigroup Plans to Rescue 500,000 Home Owners
Citigroup Inc. announced Monday that it is putting a moratorium on most foreclosures as it reaches out to 500,000 home owners who are not currently behind on their mortgages but who are deemed to be a potential risk.
The company will assign 600 salespeople to assist the targeted borrowers by adjusting their rates, reducing principal, or increasing the term of the loan.
Citigroup reported losses in the last four quarters. Monday’s action is designed to stem the flow of red ink.
"Typically the lender loses the most money when a house goes into foreclosure," says Barry Zigas, director of housing policy at the Consumer Federation of America.
Source: The Associated Press, Sara Lepro (11/10/08)
The company will assign 600 salespeople to assist the targeted borrowers by adjusting their rates, reducing principal, or increasing the term of the loan.
Citigroup reported losses in the last four quarters. Monday’s action is designed to stem the flow of red ink.
"Typically the lender loses the most money when a house goes into foreclosure," says Barry Zigas, director of housing policy at the Consumer Federation of America.
Source: The Associated Press, Sara Lepro (11/10/08)
Monday, November 10, 2008
Wednesday, November 5, 2008
Buyers With Great Credit Scores in Driver's Seat
Daily Real Estate News | November 5, 2008 | Share
Potential home buyers with great credit scores, enough cash for a 20 percent down payment, and some determination can get a very good deal right now.
"There are a lot of hungry mortgage originators, so great credit-quality borrowers are in the driver's seat,” says Keith T. Gumbinger, vice-president of HSH, a mortgage market analyst.
Borrowers need a credit score of at least 750 to get the best deals. Keeping credit-card balances below 35 percent of their credit line is very important, but 20 percent is the maximum allowed for a top score.
Buyers in a strong-enough position can ask sellers to agree to a contingency clause that gives them an out if they can’t get the best interest rate on a mortgage.
Source: BusinessWeek, Lauren Young (11/03/2008)
Potential home buyers with great credit scores, enough cash for a 20 percent down payment, and some determination can get a very good deal right now.
"There are a lot of hungry mortgage originators, so great credit-quality borrowers are in the driver's seat,” says Keith T. Gumbinger, vice-president of HSH, a mortgage market analyst.
Borrowers need a credit score of at least 750 to get the best deals. Keeping credit-card balances below 35 percent of their credit line is very important, but 20 percent is the maximum allowed for a top score.
Buyers in a strong-enough position can ask sellers to agree to a contingency clause that gives them an out if they can’t get the best interest rate on a mortgage.
Source: BusinessWeek, Lauren Young (11/03/2008)
Tuesday, November 4, 2008
Good News for Some Borrowers
Daily Real Estate News | November 4, 2008
Action Suggests Seriousness on Refinancings
JPMorgan Chase & Co. has announced that it will rewrite 400,000 mortgages from Washington Mutual totaling $70 billion, following in the footsteps of Bank of America Corp.'s plans to rewrite 400,000 mortgages from Countrywide beginning next month.
JPMorgan Chase will reduce interest rates, suspend payments for a time, refinance mortgages through programs that write down loans to current home values, and halt foreclosure proceedings for borrowers who qualify for such assistance.
SMR Research President Stuart Feldstein expects the program to make an impact because Bank of America/Countrywide and JPMorgan Chase/Washington Mutual account for 29.2 percent of the nation's mortgages, and another 22.6 percent are tied to Citigroup Inc. and Wells Fargo & Co.
"You don't need all of the nation's 8,000 mortgage lenders to make these announcements," notes Feldstein. "You only need a handful to influence the majority of the mortgage market."
Source: Sacramento Bee, Jim Wasserman (11/04/08)
Action Suggests Seriousness on Refinancings
JPMorgan Chase & Co. has announced that it will rewrite 400,000 mortgages from Washington Mutual totaling $70 billion, following in the footsteps of Bank of America Corp.'s plans to rewrite 400,000 mortgages from Countrywide beginning next month.
JPMorgan Chase will reduce interest rates, suspend payments for a time, refinance mortgages through programs that write down loans to current home values, and halt foreclosure proceedings for borrowers who qualify for such assistance.
SMR Research President Stuart Feldstein expects the program to make an impact because Bank of America/Countrywide and JPMorgan Chase/Washington Mutual account for 29.2 percent of the nation's mortgages, and another 22.6 percent are tied to Citigroup Inc. and Wells Fargo & Co.
"You don't need all of the nation's 8,000 mortgage lenders to make these announcements," notes Feldstein. "You only need a handful to influence the majority of the mortgage market."
Source: Sacramento Bee, Jim Wasserman (11/04/08)
Friday, October 24, 2008
What You Should Know About VA Loans
VA Loans – The Veteran’s Best Friend!
No Down Payment required to $697,500!
Maximum Seller Contributions may exceed 6%!
100% Gift Funds Allowed!
No Minimum Reserve Requirements!
Not Limited to First Time Homebuyers!
Reservists Qualify for VA Benefits!
Quick Closings!
* The seller must pay all escrow fees and non allowable charges. In a $400,000 transaction this
will total about $3,000
* The seller may pay 4% over and above all the closing costs. Closing costs are not counted
towards the 4% seller contribution. This means the seller may pay all of the closing costs and
up to 4% towards discount points or the VA funding fee. This is the classic “VA No-No”
* The appraisal must be done by a VA approved appraiser. If the property does not appraise, the
borrower may cancel escrow with no loss of deposit.
* Repairs requested by the appraiser must be completed and re-inspected before closing.
* Termite report and clearance is always required for VA approval.
* Non occupant borrowers are not permitted to help the borrower qualify.
* Borrowers must occupy the property. No investment property purchases allowed. VA is often
confused as a “first time homebuyer” program, but this is not the case. VA borrowers may own
other property as long as the subject property will be owner occupied
* VA loans can be closed quickly. They don’t take longer to close than conventional loans.
* VA loans are assumable -
* Condos must be on the VA or FHA approved list.
* Condos must have 51% owner occupancy or greater, and 90% of the units must be sold and
closed. Some exceptions to the sold and closed ratio can be made for newly constructed
projects.
* To get a condo project approved, the loan officer must obtain a completed condo cert, and the
seller will have to provide CC&Rs, HOA Budget, By-Laws, and Articles of Incorporation.
If you would like more information regarding VA or other loans, feel free to call Patti Matta.
Patti Matta
858-831-0083 x104
Sr. Mortgage Advisor
Your Government Loan Expert!
No Down Payment required to $697,500!
Maximum Seller Contributions may exceed 6%!
100% Gift Funds Allowed!
No Minimum Reserve Requirements!
Not Limited to First Time Homebuyers!
Reservists Qualify for VA Benefits!
Quick Closings!
* The seller must pay all escrow fees and non allowable charges. In a $400,000 transaction this
will total about $3,000
* The seller may pay 4% over and above all the closing costs. Closing costs are not counted
towards the 4% seller contribution. This means the seller may pay all of the closing costs and
up to 4% towards discount points or the VA funding fee. This is the classic “VA No-No”
* The appraisal must be done by a VA approved appraiser. If the property does not appraise, the
borrower may cancel escrow with no loss of deposit.
* Repairs requested by the appraiser must be completed and re-inspected before closing.
* Termite report and clearance is always required for VA approval.
* Non occupant borrowers are not permitted to help the borrower qualify.
* Borrowers must occupy the property. No investment property purchases allowed. VA is often
confused as a “first time homebuyer” program, but this is not the case. VA borrowers may own
other property as long as the subject property will be owner occupied
* VA loans can be closed quickly. They don’t take longer to close than conventional loans.
* VA loans are assumable -
* Condos must be on the VA or FHA approved list.
* Condos must have 51% owner occupancy or greater, and 90% of the units must be sold and
closed. Some exceptions to the sold and closed ratio can be made for newly constructed
projects.
* To get a condo project approved, the loan officer must obtain a completed condo cert, and the
seller will have to provide CC&Rs, HOA Budget, By-Laws, and Articles of Incorporation.
If you would like more information regarding VA or other loans, feel free to call Patti Matta.
Patti Matta
858-831-0083 x104
Sr. Mortgage Advisor
Your Government Loan Expert!
Thursday, October 23, 2008
List of lenders who are participating in HOPE for homeowners program
List of Lenders Who Are Participating in the HOPE for Homeowners (H4H) Program
NOTE: Homeowners, contact your existing lender and/or a new lender to discuss how you may qualify for the H4H program.
The lenders listed below have indicated an interest in refinancing loans under the HOPE for Homeowners program. When contacting any of the lenders listed below, you are strongly encouraged to contact your servicing lender and any subordinate lien holders since their participation is vital for you to refinance into a HOPE for Homeowners mortgage. It is important to remember that the HOPE for Homeowners program is voluntary and your servicing lender may offer different solutions for avoiding foreclosure.
If you are experiencing difficulty in communicating with your current servicing lender and/or subordinate lien holders, you may wish to contact a housing counseling agency to ask for advice and assistance in reaching a mutually agreeable solution for avoiding foreclosure.
To view the list of lenders who are participating in the HOPE for Homeowners program click on the link below. Your browser will open an Excel Spreadsheet.
http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/LIST_OF_LENDERS_WHO_ARE_PARTICIPATING_IN_THE_HOPE_FOR_HOMEOW/LIST%20OF%20H4H%20PARTICIPATING%20LENDERS.XLS
The H4H Lender List was updated on October 17, 2008. We will refresh the list on most Fridays.
NOTE: Homeowners, contact your existing lender and/or a new lender to discuss how you may qualify for the H4H program.
The lenders listed below have indicated an interest in refinancing loans under the HOPE for Homeowners program. When contacting any of the lenders listed below, you are strongly encouraged to contact your servicing lender and any subordinate lien holders since their participation is vital for you to refinance into a HOPE for Homeowners mortgage. It is important to remember that the HOPE for Homeowners program is voluntary and your servicing lender may offer different solutions for avoiding foreclosure.
If you are experiencing difficulty in communicating with your current servicing lender and/or subordinate lien holders, you may wish to contact a housing counseling agency to ask for advice and assistance in reaching a mutually agreeable solution for avoiding foreclosure.
To view the list of lenders who are participating in the HOPE for Homeowners program click on the link below. Your browser will open an Excel Spreadsheet.
http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/LIST_OF_LENDERS_WHO_ARE_PARTICIPATING_IN_THE_HOPE_FOR_HOMEOW/LIST%20OF%20H4H%20PARTICIPATING%20LENDERS.XLS
The H4H Lender List was updated on October 17, 2008. We will refresh the list on most Fridays.
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